How To Secure a Medical Line of Credit for Your Optometry Practice

Managing an optometry practice comes with financial surprises—one month; cash flow is steady; the next, a delayed insurance payout puts your payroll at risk. When revenue gaps hit, having quick access to funds keeps your practice running without disruption.

With a flexible medical practice credit line—like the one offered by Chello—you can keep your practice financially stable without the slow approvals and rigid terms of traditional banks. 

Whether replacing broken equipment, covering payroll during slow months, or investing in growth, a medical line of credit provides financial breathing room so you can focus on patient care instead of cash flow worries.

Learn how to secure a medical line of credit to keep your practice financially stable and why Chello’s tailored funding solutions make it easy. 

The Hidden Costs of Running an Optometry Practice (And How a Line of Credit Can Help)

Financial challenges can catch you off guard even with a steady patient base. These unforeseen costs can make managing cash flow unpredictable:

• Delayed reimbursements. Insurance payments can take weeks or even months, leaving you covering expenses.

• Expensive equipment. Advanced tools like OCT scanners and visual field analyzers cost thousands, making upgrades and replacements a major financial burden.

• Seasonal slowdowns. Summer typically sees a 10% to 15% slow-down in patient visits. Fluctuating appointment numbers can make it harder to cover routine costs.

• Growth investments. You may need extra capital to hire specialists, expand services, or open a second location. A lack of funds could stall practice growth.

So, what’s the solution to these issues? A medical credit line gives you fast access to funds without the lengthy approval process of traditional loans or the high interest of credit cards. With a funder like Chello, you can take out only what you need, avoid unnecessary debt, and repay in a way that fits your revenue cycle. This keeps your practice financially stable and ready to handle unexpected costs.

Step-by-Step: How To Secure a Medical Line of Credit

Securing a credit line for medical practice is typically a straightforward process. With the right lender, you can access flexible funding in just a few steps: 

Step 1: Assess Your Practice’s Financial Needs

Before applying, closely examine your practice’s finances to determine how much credit makes sense and how you’ll use it. Here are some examples:

• Insurance reimbursements delay $40,000 of your $100,000 monthly revenue for 60 to 90 days—a $40,000 credit line fills the gap.
• Purchasing a $35,000 fundus camera comes with added costs—a $100,000 credit line covers the equipment, installation, and staff training.
• Rent, payroll, and utilities total $50,000 per month—having that amount available prevents delayed payments.

A detailed financial review helps you set a credit limit that fits your needs.

Step 2: Check Your Eligibility

Lenders typically consider the following when deciding on a line of credit:

• Minimum monthly or annual revenue requirements—such as $10,000 per month or $120,000 per year.
• A business or personal credit score between 670 and 739 is considered “good” and increases the chances of approval.
• Length of time in operation—most lenders expect at least one to two years in business.
• Existing debt and credit utilization—high balances can reduce borrowing capacity.

Reviewing these in advance helps you understand where you stand before applying. At Chello, we work with established practices that have been operating for at least one year. 

Step 3: Gather Required Documentation

To streamline the application process, have the following documents ready:

• Business financial statements (profit & loss, balance sheet).
• Tax returns for the past two years.
• Bank statements (typically the last three to six months).
• A business plan (if expanding or making large investments).

Having these documents prepared in advance can help speed up approval. With Chello, you simply follow the online application system, fill in your information, and receive approval within a few days.

Step 4: Choose the Right Lender and Apply

Not all lenders offer the same terms, so it’s important to compare options before applying. Each type of lender has different benefits and trade-offs:

• Traditional banks. Offer competitive rates but require extensive paperwork and have longer approval times, often taking weeks.

• Online lenders (like Chello). Provide faster approvals, flexible repayment options, and a more streamlined application process.

• Medical-specific lenders. Focus on healthcare businesses and understand industry-specific cash flow challenges, but may have stricter requirements.

Chello combines the best of traditional and modern financing. Backed by an FDIC-insured bank, you get the security of a traditional lender, the convenience of fast online approvals, and the benefit of a lender specializing in medical practice funding.

Step 5: Accept Terms and Access Funds

Once approved, review the terms to ensure they align with your practice’s financial needs. Chello offers clear, upfront terms with no hidden fees, so you know what to expect.

• Weekly repayments. Spread out payments in manageable increments rather than facing a large monthly bill.

• No hidden fees. Transparent terms mean no surprises or unexpected charges.

• 90-day cash flow projector. Plan ahead with insights into how repayments fit within your revenue cycle.

After accepting the terms, Chello’s funds are available quickly, so you can cover expenses, invest in growth, and keep your practice running without delays.

Take Control of Your Optometry Practice’s Financial Future

A medical practice credit line offers the financial flexibility your optometry practice needs to thrive. Whether investing in new technology, managing cash flow, or expanding your services, having access to medical credit lines ensures you can focus on providing exceptional eye care to your patients.
Sign up with Chello today and discover how our medical practice funding solutions can help you stay ahead in a competitive industry.